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Receivers Asked For Banks; Move Will Be Fought (Continued from Page One) been unavailing. but that Transamerica was still considering entering the Nevada banking field. Court's Jurisdiction Issue "What they may do is to open branch banking system here and then buy certain assets from the mortgage company or receivers. or whoever has the assets," Eccles said. A decision by Transamerica is expected this week end. Eccles said. The authority of a Nevada district judge to appoint a receiver for a bank will be an issue at forthcoming sessions of the trial. Judge H. W. Edwards of Ely, in the case in which Prince A. Hawkins sought to have a receiver appointed for the United Nevada bank. ruled that the court had no jurisdiction to appoint a receiver unless grave charges were made against the bank superintendent Two Remedies Seen "Our position will be that the court cannot appoint a receiver," M. A. Diskin, attorney for Bank Superintendent Seaborn, said last night. "The Nevada statute provides two remedies: reorganization or turning over the assets to the depositors. Seaborn has $20,000,000 in his care. We are going to be sure that the assets are not given to any one who has not the authority to receive them." Diskin said. Any further reorganization steps and the receivership issue will be decided at the next court session. November 15. Statement Issued After a conference last night Gunzendorfer and Griswold made the following statement: "We are going over the law and checking facts to determine which methods (receivership or a mortgage company) will be legal and how depositors can get the most money with the least expense. "As to the law, we have grave doubts of the court's authority to appoint a receiver or receivers under the present status of the case. Receivership Held Costly "As to the benefit of the depositors, we certainly feel that anything that will provide for liquidation is better than receiverships, with the incidental costs and attorney fees. "Further, we feel that the assets of the banks belong to the depositors and that they should have the right to select the method in which their property should be handled. "The cross-complaints filed by opposing attorneys do not show that it is the desire of the depositors to have receiverships. Receiverships certainly are not our desire, as past receiverships have been impractical from the standpoint of time and expense. Bank Asks Receiver "The 1933 legislature. in drawing the 1933 banking act. attempted to avoid the very thing our opponents desire to accomplish. "In due course and as soon as possible we expect to file pleadings setting forth our position." The attorneys filed answers and cross-complaints asking receiverships or a joint receivership for all state banks except the Wells State bank. E. F. Lunsford on October 10 filed such papers in the Riverside bank case. The First National bank of Reno vesterday petitioned for receivership the Henderson bank of Elko. The Henderson bank owes the Reno First National $3,324.36. Resume Case Nov. 15 Judge Guild declared that hearings would be held every day beginning November 15 and until the matter of disposal of the assets of the banks is completed. The issue now before the court is: Can the court appoint a receiver?" Judge Guild declared. The show-cause order, notifying all depositors to have any plans or suggestions before the court in writing on November 15 was granted by Judge Guild at the suggestion of H. R. Cooke. Judge Guild spent yesterday aft- ernoon preparing the order and mailing It to every newspaper in a town where there is a closed Wingfield bank. Preference Suits Pending "We will hear all matters regarding receiverships or new plans Wednesday, November 15. at 10 a. Judge Guild ordered. Griswold said he had no objection to the show-cause order. Judge Guild said that he still had jurisdiction of the case and expected to make final disposition of the bank problem. There are 10 suits for preference pending. one in Elko. one in Reno, three in Tonopah. three in Carson, one in Virginia City and one in Wells. Trial of the Wells State bank preference claims was set for next Monday. the Virginia City case for Tuesday and the industrial commission suits against the Carson Valley bank next Wednesday. The answers and cross-complaints asking receivership filed yesterday included the Tonopah Banking corporation. H. R. Cooke petitioner; Bank of Sparks, Agnes Brown, John Gunn. Herbert L. Covington, M. E. Bowman. William Schipper, August Bernacini, Frank Cantlon and A. J. Christensen petitioners; Virginia City bank, George H. Niemeyer petitioner; Carson Valley bank. Gertrude Church and the Zephyr Cove Properties company petitioners; United Nevada bank, Neph Adamson petitioner, and Bank of Nevada Savings and Trust company. Joseph A. Tacchino petitioner. The petitioners in the Riverside action included Mrs. J. La Rue Robinson, P. E. Groesbeck. Eliza Hill, Roger Bernard and L. B. Jenkins.
